Terri L and Austin W. Hartsock - Page 13

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          of the methodology that petitioners contend they used, as re-               
          flected on such workpapers, to estimate the gambling losses that            
          they claim they incurred at Harrah’s on August 13 and 14 and                
          September 4, 1999.10  We are unwilling to rely on Mr. Hartsock’s            
          self-serving and uncorroborated testimony and the self-serving              
          and uncorroborated workpapers that petitioners prepared in order            
          to establish that they incurred gambling losses at Harrah’s on              
          certain dates during 1999.  Petitioners presented no evidence in            

               9(...continued)                                                        
          time interval between 10:22 p.m. and 10:51 p.m. is 29 minutes,              
          not 19 minutes.  Moreover, Mr. Hartsock testified that he would             
          have been able to wager within a minute only $300 in a $25 slot             
          machine, or at most $5,700 in a 19-minute period and at most                
          $8,700 in a 29-minute period.                                               
               An additional example of the unreliability of petitioners’             
          workpapers is that one of those workpapers indicates that peti-             
          tioners estimated that Mr. Hartsock wagered in a $100 slot                  
          machine, and lost before any reduction for time spent not wager-            
          ing, $42,000 during what they computed to be a 35-minute period             
          between 1:35 a.m. and 2:00 a.m. on Sept. 5, 1999.  However, the             
          time interval between 1:35 a.m. and 2:00 a.m. is 25 minutes, not            
          35 minutes.                                                                 
               10For example, petitioners have failed to establish that               
          they gambled during each time interval between gambling winnings            
          shown on the respective Harrah’s substitute Forms W-2G with                 
          respect to Aug. 13 and 14 and Sept. 4, 1999, at the same slot               
          machine from which they received gambling winnings at the end of            
          each such time interval, as shown on such forms.  Nor have                  
          petitioners persuaded us that they would have been able to wager            
          within a minute the respective amounts that they claim they                 
          wagered in a $100 slot machine (i.e., $1,200) and a $25 slot                
          machine (i.e., $300).  In addition, petitioners did not provide a           
          specific and acceptable explanation as to how they calculated the           
          respective amounts of time that they assert they did not spend              
          playing slot machines to smoke cigarettes, get drinks, and talk             
          with others, which time they assert they used to reduce their               
          claimed gambling losses at Harrah’s.                                        





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